As of the afternoon of March 20th, after the launch of the HTX trading mining activity on Huobi, over 350,000 U worth of $HTX has been repurchased from the secondary market. This activity will last for one month, and it is expected that over 3 million U worth of $HTX will be repurchased.

Introduction to $HTX Repurchase and Burn

The repurchase and burn of $HTX relies on the trading mining activity on the Huobi platform, where trading BTC/USDT spot mines $HTX rewards. The rewards will be slightly higher than the fees paid, with a 105% reward for Makers and 102% for Takers.

The repurchase amount comes from the fee income of the BTC/USDT trading pair, which includes all fee income from that pair, not just the income from trading mining, but also the fees from users who did not participate in trading mining.

BTC is generally the largest trading volume currency on the trading platform, and repurchasing $HTX with the income from this currency is almost equivalent to repurchasing half of Huobi's income.

Repurchases are conducted daily, with the previous day's BTC/USDT fee income being calculated and repurchased on the secondary market. Burns are conducted quarterly.

Since the repurchase is evenly distributed daily, it is difficult to immediately reflect in the $HTX price, but in the long run, it will be significantly beneficial for $HTX.

$HTX Burn Volume Will Exceed the Issuance Volume

Since the $HTX rewards from trading mining come from the uncirculated part of the platform's development, trading mining is considered an issuance behavior towards the market. It is important to consider which has a greater impact, issuance or burn.

If issuance exceeds burn, there will inevitably be significant pressure on the $HTX price due to an increasing supply of $HTX in the market. Only when burn exceeds issuance can the $HTX price trend upwards.

If trading mining offers a 100% return, it offsets the issuance and burn, keeping the market circulation unchanged. However, with a 2%-5% excess return from trading mining, the amount of issuance increases.

Nevertheless, the burn volume of $HTX will still exceed the issuance volume because the burn includes not only the fee income from trading mining but also the income from BTC/USDT trading pairs that did not participate in trading mining. It is not possible for all users to participate in trading mining, so the burn volume will definitely be greater than the repurchase volume.

Stable Upward Trend Has Begun

In addition to short-term benefits, the repurchase and burn will also be beneficial for the long-term price of $HTX. As the burn volume accumulates, the total supply of $HTX tokens will gradually decrease, ultimately achieving a deflationary effect.

Furthermore, according to a KOL close to Huobi, the goal of trading mining is to make the trading volume of BTC pairs the highest in the entire network. In this case, the reward intensity of trading mining should not only be 100,000 U per day, but also has the potential to continue increasing.

With an increase in trading mining rewards, the corresponding burn volume will also increase, which is also beneficial for $HTX.

If more trading pairs are opened in the future, it will also increase the burn volume. Therefore, it seems that the stable upward trend of $HTX has already begun, it's just that the effect hasn't been immediate.

As long as the model is sound, the rise in coin price is only a matter of time.

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